Funds Select First Quarter 2015 Singapore This document is intended for general circulation. It has not been prepared to be suitable for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser on the suitability of an investment for you, taking into account your specific investment objectives, financial situation or particular needs before making a commitment to invest in an investment. In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you. Do not invest in investment products unless you fully understand and are willing to assume the risks associated with them. sc.com/sg Y30232 359160 SCB Fund Select List Q1 2015.indd 1 5/2/15 2:51 pm
Funds Select First Quarter 2015 What is Funds Select list Funds Select list is a publication that aims to provide you with our selected funds for the quarter. These funds have been selected based on the analysis and views of our dedicated team of fund analysts in Standard Chartered Bank (the Bank ). The team covers a wide range of funds and is continually expanding and updating their coverage. From this list, we have further classified the funds into two categories for your reference as follows: Focus Funds These are a selection of funds which reflect the current investment views and themes of the Wealth Management Group of Standard Chartered (House views) for the quarter. Core Funds These are a selection of funds from mainstream asset classes that do not necessarily reflect the House views for the quarter. Funds Selection Process The funds which are included in the Funds Select list are chosen based on the Bank s proprietary funds selection process. Funds have to fi rst pass a Quantitative screening that reviews the size, track record and risk/reward characteristics before they are subjected to a Qualitative screening. Qualitative review forms the most important part of the funds selection process and focuses on the following 3Ps: People, Process and Performance. Basis of Selection People Process Performance We focus on the people behind the product. This involves in-depth interviews with the fund managers to understand the people who are making the investment decisions their experience, as well as the depth and stability of the teams supporting them. Goal : To identify managers who stand out amongst their peers in experience, insight and resources. A detailed discussion of the investment philosophy and process is carried out with the fund manager. This analysis of their process allows us to understand what the manager is doing to identify investments and manage risk. Goal : To check the level of the manager s discipline and gain insight into their skills and focus. Past performance is not indicative of future performance. We seek to evaluate how and why the fund has performed in various market conditions. Goal : To analyze the reasons behind the fund s returns. We seek qualities that we believe demonstrate an ability to perform in a consistent manner. 1
Investment Outlook and Themes 2015: A year to W.I.D.E.N. your investment horizons For more details on our investment outlook and themes, please refer to the full Market Outlook 2015. The Market Outlook 2015 is available at our public website: sc.com/sg/invest/ W World economy to keep expanding, led by an accelerating US Remain overweight risky assets, especially Developed Market equities I Inflation to remain low Maintain an allocation to diversified income D Divergent monetary policies to create multiple investment opportunities Position yourself for a strong US dollar Keep alert to local opportunities as they arise E End of US zero interest rates to create short-term volatility in many asset classes Prepare for, and take advantage of, greater volatility N Need for reform key to Emerging Market returns Retain selective stance for now Source: Standard Chartered Bank 2
How to use the Funds Select List Funds Select Performance Tracker (Performance to 31 December 2014) 1 Focus Funds MULTI ASSET INCOME 2 3 4 5 6 2015 Theme 3M 2014 2013 2012 2011 2010 Volatility Sharpe Ratio Available Currency Share Classes Global Multi Asset Income JPM Global Income (SGD Hedged) I 1.38% 6.49% NA NA NA NA NA NA USD, SGD Hedged, AUD Hedged BGF Global Multi Asset Income (SGD Hedged) Schroder ISF Global Multi Asset Income I 0.98% 3.99% NA NA NA NA NA NA I 3.55% 7.60% NA NA NA NA NA NA SGD Hedged, USD, AUD Hedged, GBP Hedged, NZD Hedged AUD Hedged, SGD, SGD Hedged, USD, GBP Hedged EQUITIES: DEVELOPED MARKETS Global Equity Schroder Global Dividend Maximiser W I E 5.90% 9.05% 19.10% 10.06% 0.45% -3.35% 8.44% 1.39 USD, SGD, AUD Hedged, EUR Hedged Fidelity Global Dividend W I 5.42% 9.91% 30.04% NA NA NA NA NA AUD Hedged, SGD, USD North American Equity AllianceBernstein- Select US Equity (SGD Hedged) European Equity W 4.58% 11.84% 29.29% NA NA NA NA NA SGD Hedged, EUR Hedged, GBP Hedged, USD BGF European (SGD Hedged) W 1.91% 2.28% NA NA NA NA NA NA USD, EUR, SGD Hedged Allianz European Equity Dividend (SGD Hedged) W I 0.09% NA NA NA NA NA NA NA EUR, AUD Hedged, SGD Hedged, USD Hedged 1 2 3 4 5 6 Reporting Date: This is the performance date of the report at which all fund performance returns are updated. This date shall be the last day of the immediate calendar month before the quarter, or the next available trading day should the last day fall on a non-trading day 2015 Theme: The letters in this column indicate which W.I.D.E.N theme(s) the fund focuses on. 3M: This is the percentage return achieved by the fund for the past 3 months as of the performance date of the report. Calendar Year Returns: These are the percentage returns achieved by the fund for the calendar years of 2009, 2010, 2011, 2012, 2013 respectively. Only full calendar year performance will be noted. Volatility : Risk can be measured using annualized 3-year volatility as an indicator. Volatility or standard deviation is a measure of the absolute variability of returns. The higher the volatility of a fund s returns, the more risky the fund is over the past. Sharpe Ratio : Risk relative to return can be measured by 3-year Sharpe Ratio. Sharpe Ratio is a measure of the fund s performance against the 3-month US Treasury bill rate, adjusted for risk. A relatively high positive ratio indicates that the fund has a relatively high risk-adjusted performance historically. All else being equal, the higher the Sharpe Ratio, the better. 3
Funds Select Performance Tracker (Performance to 31 December 2014) Focus Funds 2015 Theme 3M 2014 2013 2012 2011 2010 Volatility Sharpe Ratio Available Currency Share Classes MULTI ASSET INCOME Global Multi Asset Income JPM Global Income (SGD Hedged) I 1.38% 6.49% NA NA NA NA NA NA USD, SGD Hedged, AUD Hedged BGF Global Multi Asset Income (SGD Hedged) Schroder ISF Global Multi Asset Income I 0.98% 3.99% NA NA NA NA NA NA I 3.55% 7.60% NA NA NA NA NA NA SGD Hedged, USD, AUD Hedged, GBP Hedged, NZD Hedged AUD Hedged, SGD, SGD Hedged, USD, GBP Hedged EQUITIES: DEVELOPED MARKETS Global Equity Schroder Global Dividend Maximiser W I E 5.90% 9.05% 19.10% 10.06% 0.45% -3.35% 8.44% 1.39 USD, SGD, AUD Hedged, EUR Hedged Fidelity Global Dividend W I 5.42% 9.91% 30.04% NA NA NA NA NA AUD Hedged, SGD, USD North American Equity AllianceBernstein- Select US Equity (SGD Hedged) European Equity W 4.58% 11.84% 29.29% NA NA NA NA NA SGD Hedged, EUR Hedged, GBP Hedged, USD BGF European (SGD Hedged) W 1.91% 2.28% NA NA NA NA NA NA USD, EUR, SGD Hedged Allianz European Equity Dividend (SGD Hedged) Japan Equity Eastspring Japan Dynamic (Hedged) W I 0.09% NA NA NA NA NA NA NA W 3.95% 9.37% NA NA NA NA NA NA EUR, AUD Hedged, SGD Hedged, USD Hedged SGD, SGD Hedged, USD, USD Hedged Schroder ISF Japanese Equity (USD Hedged) W 6.43% 10.63% NA NA NA NA NA NA SGD, USD Hedged, JPY Information and performance data in respect of the funds set out herein is provided by respective fund houses, Lipper, Inc. and Bloomberg L.P. All information and data are updated as at 31 December 2014. All fund performance numbers are expressed in SGD. All fund performance numbers are based on NAV-NAV pricing, with dividends reinvested (if any). For the latest version of the Funds Select List, please contact your Relationship Manager. 4
Funds Select Performance Tracker (Performance to 31 December 2014) Focus Funds 2015 Theme 3M 2014 2013 2012 2011 2010 Volatility Sharpe Ratio Available Currency Share Classes EQUITIES: ASIA EX JAPAN Asia Pacific ex Japan Equity First State Dividend Advantage N I 4.96% 19.12% 7.66% 17.18% -9.15% 11.17% 8.94% 1.53 SGD, USD India Equity Franklin India N 11.60% 48.51% -1.91% 15.42% -30.86% NA 20.89% 0.86 SGD, USD Information and performance data in respect of the funds set out herein is provided by respective fund houses, Lipper, Inc. and Bloomberg L.P. All information and data are updated as at 31 December 2014. All fund performance numbers are expressed in SGD. All fund performance numbers are based on NAV-NAV pricing, with dividends reinvested (if any). For the latest version of the Funds Select List, please contact your Relationship Manager. 5
Funds Select Performance Tracker (Performance to 31 December 2014) Core Funds 2015 Theme 3M 2014 2013 2012 2011 2010 Volatility Sharpe Ratio Available Currency Share Classes BALANCED / MIXED ASSETS Global Balanced BGF Global Allocation CORE -0.33% 1.35% 13.81% 7.42% -5.36% 7.77% 7.34% 0.89 USD, SGD Hedged EQUITIES: DEVELOPED MARKETS Global Equity Aberdeen Global Opportunities CORE 0.00% 5.29% 16.06% 7.69% -1.27% -0.04% 8.09% 1.08 SGD, USD Fidelity Global Dividend CORE 5.42% 9.91% 30.04% NA NA NA NA NA AUD Hedged, SGD, USD North American Equity Franklin U.S. Opportunities CORE 7.46% 12.04% 43.31% 2.90% -2.82% 10.08% 11.62% 1.49 SGD, SGD Hedged, USD AllianceBernstein- Select US Equity (SGD Hedged) European Equity CORE 4.58% 11.84% 29.29% NA NA NA NA NA SGD Hedged, EUR Hedged, GBP Hedged, USD BGF European (SGD Hedged) CORE 1.91% 2.28% NA NA NA NA NA NA USD, EUR, SGD Hedged Japan Equity Eastspring Japan Dynamic (SGD Hedged) CORE 3.95% 9.37% NA NA NA NA NA NA SGD, SGD Hedged, USD, USD Hedged Schroder ISF Japanese Equity (USD Hedged) CORE 6.43% 10.63% NA NA NA NA NA NA SGD, USD Hedged, JPY EQUITIES: ASIA EX JAPAN Asia ex Japan Equity Schroder Asian Growth CORE 5.22% 9.59% 9.28% 22.05% -10.88% 14.59% 9.94% 1.27 SGD, USD Asia Pacific ex Japan Equity First State Dividend Advantage CORE 4.96% 19.12% 7.66% 17.18% -9.15% 11.17% 8.94% 1.53 SGD, USD Greater China Equity First State Regional China Growth CORE 5.32% 9.08% 15.54% 13.20% -9.95% 8.56% 9.29% 1.26 SGD, USD EQUITIES: GLOBAL EMERGING MARKETS Global Emerging Markets Equity Fidelity Funds Emerging Markets CORE 4.09% 3.90% 15.02% 9.76% -16.20% 9.31% 11.15% 0.77 SGD, USD 6 Information and performance data in respect of the funds set out herein is provided by respective fund houses, Lipper, Inc. and Bloomberg L.P. All information and data are updated as at 31 December 2014. All fund performance numbers are expressed in SGD. All fund performance numbers are based on NAV-NAV pricing, with dividends reinvested (if any). For the latest version of the Funds Select List, please contact your Relationship Manager.
Funds Select Performance Tracker (Performance to 31 December 2014) Core Funds 2015 Theme 3M 2014 2013 2012 2011 2010 Volatility Sharpe Ratio Available Currency Share Classes FIXED INCOME: GLOBAL Global Government Bond Templeton Global Bond CORE 1.69% 6.21% 4.58% 9.50% -2.01% 2.01% 4.24% 1.39 SGD, USD, EUR, SGD Hedged, GBP Hedged, AUD Hedged, EUR Hedged Unconstrained Templeton Global Total Return FIXED INCOME: GLOBAL Global Corporate Bond CORE 1.81% 4.74% 6.95% 12.78% 0.06% 5.38% 4.80% 1.51 SGD, USD, SGD Hedged, AUD Hedged, GBP Hedged Schroder ISF Global Corp Bond CORE 0.81% 5.62% 0.25% 9.71% 2.93% 5.27% 3.68% 1.17 USD, SGD Hedged US Aggregate Bond AllianceBernstein American Income Portfolio CORE 4.41% 11.19% 1.79% 3.25% 6.94% 0.88% 4.00% 1.13 SGD, EUR, USD, SGD Hedged, AUD Hedged, EUR Hedged FIXED INCOME: HIGH YIELD BONDS Global High Yield AllianceBernstein Global High Yield Portfolio CORE 2.28% 6.53% 8.59% 9.75% 1.40% 5.75% 3.56% 2.09 SGD, USD, EUR, SGD Hedged, AUD Hedged FIXED INCOME: EMERGING MARKETS DEBT Emerging Markets Debt (Hard Currency) Templeton Emerging Markets Bond CORE -1.73% 0.29% 2.77% 11.35% -0.45% 3.21% 5.17% 0.75 USD FIXED INCOME: ASIAN BONDS Asian Bonds (Hard Currency) PARVEST Bond Asia ex-japan CORE 3.91% 10.29% -0.55% 5.26% 4.45% 3.08% 4.32% 0.94 USD Asian Bonds (Local Currency) Templeton Asian Bond CORE 2.03% 7.54% 0.28% 3.94% 0.49% 1.56% 3.81% 0.80 SGD, SGD Hedged, USD Information and performance data in respect of the funds set out herein is provided by respective fund houses, Lipper, Inc. and Bloomberg L.P. All information and data are updated as at 31 December 2014. All fund performance numbers are expressed in SGD. All fund performance numbers are based on NAV-NAV pricing, with dividends reinvested (if any). For the latest version of the Funds Select List, please contact your Relationship Manager. 7
Funds Select Performance Tracker (Performance to 31 December 2014) 3M 2014 2013 2012 2011 2010 Volatility BROAD MARKET INDICES SIBOR SGD 1 Month 0.08% 0.31% 0.32% 0.32% 0.31% 0.39% 0.02% Citigroup WGBI -1.49% -0.48% -4.00% 1.65% 6.35% 5.17% 4.34% Barcap Global Aggregate -1.04% 0.59% -2.60% 4.32% 5.64% 5.54% 3.99% Barcap Global High Yield -2.51% 0.01% 7.32% 19.60% 3.12% 14.82% 5.98% JPMorgan EMBI Global -1.65% 5.53% -6.58% 18.54% 8.46% 12.04% 7.70% MSCI AC World 0.41% 4.16% 22.80% 16.13% -7.35% 12.67% 10.64% S&P 500 4.93% 13.69% 32.39% 16.00% 2.11% 15.06% 9.10% MSCI Europe -4.35% -6.18% 25.23% 19.12% -11.06% 3.88% 14.84% MSCI Japan -2.42% -4.02% 27.16% 8.18% -14.33% 15.44% 13.07% MSCI Emerging Markets -4.44% -1.82% -2.27% 18.63% -18.17% 19.20% 15.21% MSCI AC Asia ex Japan 0.12% 4.80% 3.07% 22.36% -17.31% 19.62% 13.45% MSCI China 7.17% 7.96% 3.64% 22.75% -18.41% 4.63% 16.86% MSCI India -0.68% 23.87% -3.83% 25.97% -37.17% 20.95% 23.80% Rogers International Commodity Index -16.06% -22.21% -4.49% 2.03% -6.93% 19.01% 13.78% Information and performance data in respect of the indices set out herein is provided by Lipper, Inc. and Bloomberg L.P. Performance of the broad market indices are provided for informational purposes only. These indices may not be the benchmarks chosen by the issuer of the fund. For further information on the funds in this document, investors should refer to the relevant fund disclosure documents and it is recommended that the client seek independent professional advice before making any investment decisions. All information and data are updated as at 31 December 2014. For the latest version of the Funds Select List, please contact your Relationship Manager. *Broad Market Indices in USD, unless otherwise stated 8
Important Information Warning Statements: You should not invest in the funds stated in this document unless the intermediary who sells it to you has explained to you and you have accepted that the product is suitable for you. This document is not intended to be an offer or solicitation of an offer to buy or sell funds and is not intended to constitute investment advice. This document is intended for general circulation. It has not been prepared to be suitable for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specifi c investment objectives, fi nancial situation or particular needs of any particular person. You should seek advice from a fi nancial adviser on the suitability of an investment for you, taking into account your specifi c investment objectives, fi nancial situation or particular needs before making a commitment to invest in an investment. In the event that you choose not to seek advice from a fi nancial adviser, you should consider whether the product in question is suitable for you. Do not invest in investment products unless you fully understand and are willing to assume the risks associated with them. You should refer to the relevant offering documents for detailed information before you decide whether to invest or not. Past performance is not indicative of future performance. These investments involve risks, the prices of units or shares of the funds referred to in this document fl uctuate, sometimes dramatically, and you may lose your entire investment. Some of the funds may invest extensively in fi nancial derivatives instruments or emerging markets and may have leveraged exposure, which may lead to higher risk of capital loss. 1. Standard Chartered Bank: Standard Chartered Bank ( SCB ) is incorporated in England with limited liability by Royal Charter 1853, Reference number ZC 18. The Principal Offi ce of SCB is situated in England at 1 Basinghall Avenue, London, EC2V 5DD. SCB is authorised by the United Kingdom s Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. This document is being distributed in Singapore by Standard Chartered Bank (Singapore) Limited ( SCBSL ). Recipients in Singapore should contact SCBSL in relation to any matters arising from, or in connection with, this document. This document has not and will not be registered as a prospectus in any jurisdiction and it is not authorised by any regulatory authority under any regulations. 2. Informational purposes: This document is for informational purposes only and is not independent research. It is meant only for use as a reference tool. It has not been prepared for any particular person or class of persons. The funds referred to in this document constitute only a portion of the funds that are available for distribution from SCBSL and references to such funds in this document do not constitute recommendations over any other fund available from SCBSL. That is, comparison of funds across asset classes may not be meaningful. The information, data and any expression of opinion in connection with the funds referred to in this document (information): (a) are the property of SCBSL; (b) are not intended to provide fi nancial, legal, accounting or tax advice to any person and should not be relied upon in that regard.; (c) may not be copied or distributed without the prior consent of SCBSL; (d) are based on sources believed by SCBSL to be reliable but it is not expressly or impliedly represented, warranted or guaranteed by SCBSL as to its accuracy or completeness. Information contained in this document is current only as at its date and may no longer be true or complete when read by an investor. Opinions are subject to change without notice to you. Neither SCB nor SCBSL is responsible for any damages or losses arising from any use or reliance on the information contained in this document. The information is provided without obligation and on the understanding that any person who acts on it or changes it, his or her position in reliance on it does so entirely at its, his or her own risk. As such, to the extent permitted by law, neither SCB nor SCBSL accepts liability and neither will be liable for any loss or damage arising directly or indirectly (including special, accidental or consequential loss or damage) from your use of this document and the information contained herein, howsoever arising, and including any damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services. 3 Your independent investment decision: Any investment decision by you should not be made based solely on the information contained in this document nor in reliance on or on any advice provided by SCBSL and you accept that neither SCB nor SCBSL has any responsibility or obligation in connection with your decision to invest in the funds referred to in this document. 4 Volatility of investments: This document does not constitute a prediction of the likely future movements in rates or prices or any representation that such future movements will exceed those shown in this document. Investors may be exposed to exchange rate fl uctuations which may cause the value of investments to go up or down. The value and income of your investment can fall as well as rise and you may get back less than invested. 5 No deposit protection: These investments are not bank deposits and are not protected under any deposit protection scheme by any authority. 6 Capacity: In distributing the funds referred to in this document, SCBSL will be acting as an agent of the investor only for the purpose of effecting transactions in relation to such funds as directed by the client. In no circumstances will SCBSL act as an investment adviser to the investor. 7 SCBSL as distributor: SCBSL acts as a distributor of the funds referred to in this document (which represents a proportion of all of the funds for which SCB acts as distributor). SCBSL receives fees including trail commissions for the funds that it distributes. The contents of this document are complied by the Funds Select team whose work is not affected by any of the distribution agreements between SCB or SCBSL and such funds. SCB, SCBSL, and/ or a connected company, may at any time, to the extent permitted by applicable law and/or regulation, be long or short any securities, currencies or fi nancial instruments referred to on this document or have a material interest in any such securities or related investment, or may be the only market maker in relation to such investments, or provide, or have provided advice, investment banking or other services, to issuers of such investments. Accordingly, SCB, its affi liates and/or subsidiaries may have a confl ict of interest that could affect the objectivity of this document. 8 Copyright: Standard Chartered Bank 2013. Copyright in all materials, text, articles and information contained herein is the property of, and may only be reproduced, redistributed or forwarded with permission of an authorised signatory of, Standard Chartered Bank. Copyright in materials created by third parties and the rights under copyright of such parties are hereby acknowledged. Copyright in all other materials not belonging to third parties and copyright in these materials as a compilation vests and shall remain at all times copyright of Standard Chartered Bank and should not be reproduced or used except for business purposes on behalf of Standard Chartered Bank or save with the express prior written consent of an authorised signatory of Standard Chartered Bank. All rights reserved. Standard Chartered Bank 2013. 9
Information is accurate as of 1 January 2015 Standard Chartered Bank (Singapore) Limited Reg. No. 201224747C Printed FEB15